Silver Wheaton

Its been a fun couple of weeks with Silver Wheaton (SLW), just to recap on May 1st I have bought 400 shares of SLW for $24.10 per share and quickly sold the $25 covered call for .42 cents per share, expiring May 17th. with the last trading day being May 16th.

Those options had expired and today I have written another covered call for the June 21st expire. The only issue is that I decided to go with the $24 contract and not the $25 as the premium was higher for this contract. As such, I have written the call and have gotten filled at $ 0.51.

For this month I've collected $188.00 net and if SLW share price runs up and over the $24 mark it'll be sold causing a loss of $0.10 and share.

Best case is for the shares NOT to be called away at $24, as this would give me the maximum return of 1.95% for the month and IF it gets called away it'll be the worst case, which limits the return to 1.54%.

Bought at                              $24.10
May covered call $152.00        0.38
June covered call $188.00        0.47       
Total collected     $340.00        0.85      3.53%

In either case it still is better then the yearly dividend of 1.257%, based on my purchase price.

Lets see what SLW has in store in the next 4 weeks. Till then happy trading.